Employment Law Bits

COBRA health insurance coverage explained

COBRA (the Consolidated Omnibus Budget Reconciliation Act) provides people who lose their jobs the right to continued health insurance coverage at group rates. While this amount is typically higher than what employees were paying while employed, the cost is usually lower than private, individual health insurance. To be eligible for COBRA benefits, three elements must be met:

• Plan Coverage – the employee’s former employer must have provided a group health plan and employed twenty or more employees.
• Qualified Beneficiaries – this is generally an individual covered by a group health plan, and can also include the employee, the employee’s spouse or dependent children; and occasionally a retired employee may qualify.
• Qualifying Events – these are events that would result in the loss of health coverage for an individual. The two main qualifying events are (1) voluntary or involuntary termination of employment for reasons other than gross misconduct; and (2) reduction in the number of hours of employment.

Prior to 2009, COBRA participants were required to pay the entire insurance premium at the employer’s group rate, which can be costly (employers usually pay part of the premium for active employees). With President Obama’s passage of the Stimulus Package in February of 2009, certain qualified individuals may be eligible for up to a 65% reduction of their premium cost under COBRA. To be eligible for the benefit, the former employee must:

• Be eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009;
• Elect COBRA coverage; and
• Be eligible for COBRA as a result of involuntary termination.

For more information regarding your rights under COBRA, please contact an employment attorney.

Exceptions to the Employment-at-Will doctrine

This post is the fourth in a 4-part series.

The general rule of employment-at-will is that an employee can be fired for good cause, bad cause or no cause at all. There are three major exceptions to that rule. However, states vary in recognition of each exception. For example, Massachusetts does not recognize the implied-contract exception, while Connecticut does not recognize the covenant of good faith and fair dealing. The three exceptions are:

• Public-Policy – an employee may not be terminated if the termination is in contravention of an unambiguous, well-established public policy of the state. The most prevalent example of the public policy exception is the termination of an employee who files a worker’s compensation claim.
• Implied-Contract – this exception applies where an employer makes an oral or written representation to an employee regarding job security. Even in the absence of an express, written employment contract, courts will sometimes imply a contract based on the representations made by the employer. Another common example of the implied-contract exception is where an employee handbook outlines the procedures that will be followed by the employer prior to terminating an employee, and those procedures are not followed, or states that the employee may only be terminated for “just cause.” Although the handbook is technically not an official employment contract, absent an express provision to the contrary, courts will often imply a contract.
• Covenant of Good Faith & Fair Dealing – courts will imply a covenant of good faith and fair dealing into every employment relationship, regardless of the existence of a written employment contract. Under this exception, employers are either required to show “just cause” for terminating an employee, or are prohibited from terminating an employee in bad faith or based on malice.

If you believe that you have been a victim of wrongful termination pursuant to one of the above exceptions, you are urged to contact an attorney.

Protection against retaliation resulting from a discrimination claim

This post is the third in a 4-part series.

If an employee files a claim for discrimination or reports unlawful conduct by his or her employer, the employer is prohibited from taking an adverse employment action against the employee. Massachusetts law requires the employee to show three things in order to prevail on a claim of retaliation.

1. The employee engaged in protected activity
2. The employer knew of the protected activity and subsequently acted adversely against the employee
3. The adverse employment action was related to the protected activity

Protected Activities – Some examples of protected activity given by the Massachusetts Commission Against Discrimination (MCAD) are:

• Speaking to someone at the MCAD, Equal Employment Opportunity Commission (EEOC) or other civil rights or law enforcement agency, or to an attorney about the possibility of filing a claim of discrimination against the employer
• Filing a complaint at the MCAD or EEOC against the employer
• Filing a complaint in court
• Talking to an MCAD or EEOC investigator about another employee’s charge of discrimination against the employer
• Testifying as a witness concerning a claim of harassment against the employer
• Complaining to management or filing an internal complaint of harassment
• Asking a supervisor or co-worker to stop engaging in harassing conduct
• Cooperating with an internal investigation of a sexual harassment complaint
• Or meeting with co-workers to discuss how to stop sexual harassment in the workplace.

Adverse Actions – Examples of adverse employment action include: termination, denial of promotion, demotion in title or duties, transfer to a less favorable position or location, involuntary placement on leave, hostile or abusive workplace treatment, or decreasing compensation or benefits.

Legal protection against discrimination

This post is the second in a 4-part series.

Although the general rule in the United States is that an employer can fire an employee for good cause, bad cause, or no cause at all, the government has taken steps in the last century to afford employees more protection. Several laws have been passed with the intent of protecting employees from employment-related discrimination. Here is a brief summary of the federal laws that protect employees:

• The Civil Rights Act of 1964 (Title VII) – prohibits employment discrimination based on race, color, religion, sex, or national origin;
• The Equal Pay Act (EPA) – protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination;
• The Age Discrimination in Employment Act (ADEA) – protects individuals who are 40 years of age or older; 
• The Americans with Disabilities Act (ADA) – prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments; 
• The Rehabilitation Act – prohibits discrimination against qualified individuals with disabilities who work in the federal government; and
• The Civil Rights Act of 1991 – provides monetary damages in cases of intentional employment discrimination.

These laws are enforced by the United States Equal Employment Opportunity Commission and the Massachusetts Commission Against Discrimination. If you feel that you have been discriminated against at your job in violation of one of these laws, you should contact an attorney

Employment-at-Will - what is it and what does it mean to you?

This post is the first in a 4-part series.

The majority of employees in the United States are employed without a written employment contract, which is also known as being employed-at-will. While most employees know that they can quit at any time, what they do not know is that their employer can also fire them at anytime, without any legal recourse for the employee.

In an at-will employment relationship, either party may terminate the employment without the risk of liability for doing so. Employees can quit without providing a reason and employers can fire an employee for good cause, bad cause, or for no cause at all. Although it is common courtesy for an employee to give two weeks’ notice prior to leaving a job, it is not legally required. The at-will employment doctrine is based on the idea that individuals should have the freedom to choose where they work and be able to work free from restraint.

That is not to say that employees never have any legal remedy for being terminated. There are several protections for employees who are fired because of discrimination or are retaliated against for reporting an employer’s unlawful activity. Additionally, there are several exceptions to the employment-at-will doctrine that can result in liability for the employer. The three main exceptions are: the public-policy exception, the implied-contract exception, and the covenant-of-good-faith exception.

Information on these employee protections and exceptions will be discussed in upcoming blog posts.